The trends driving global tea production

Innovation and premium brands characterise the tea market, which is attracting a growing number of young buyers, according to the Food and Agriculture Organization of the United Nations.

Global tea production amounts to more than US$17 billion annually (about R275 billion), while world tea trade is valued at about US$9,5 billion (R161 billion).

Smallholders are responsible for 60% of world production. Tea provides productive jobs in rural areas, which enables households to meet their food security needs and improve their nutritional status.

Global per capita tea consumption has increased by 2,5% over the past decade, with marked expansion in tea-producing countries. Developing economies in East Asia, Africa, Latin America and the Caribbean have been driving the growth in demand. In the more mature European markets, as well as other advanced countries, demand for tea has dropped.

The need for innovation is evident, as consumers increasingly demand organic ingredients, and diversified blends and flavours. There is also growing interest in higher-quality speciality teas, with green teas and fruit teas gaining popularity, especially in Europe, owing to real or perceived health benefits.

CHALLENGES

Critically, the sector needs to balance the need for expansion and the requirements of sustainability at all stages of the value chain.

Growing consumption of tea in producing countries, driven by population and income growth, has seen a decrease in exportable production over the past two decades. Nevertheless, per capita consumption remains low in these countries compared with import markets. More must therefore be done to increase demand by exploring prevailing market opportunities.